Bond-market:The BVR-model avoids high beta bonds (long-bonds) and also intermediate duration bonds.
The Bond Value Ratio is shown in Fig 4 and is near last week’s value. According to the model, only when BVR turns upward after having been lower than the lower offset-line should one consider long bonds again.
The Yield Curve:The yield curve model indicates the trend of the 10-year and 2-year Treasuries yield spread. Figure 5 charts (i10 – i2) shows that the yield curve is above last week’s level and it signaled a buy STPP end August 2020. FLAT and STPP are ETNs; STPP profits from a steepening yield curve and FLAT increases in value when the yield curve flattens. This model confirms the direction of the BVR.
Gold:The modified Coppock Gold indicator shown in Fig 6. This model generated a new buy signal end March 2019 and is invested in gold.
This indicator is described in Is it Time to Buy Gold Again? – Wait for the buy signal …….
The iM GOLD-TIMER Rev-1 generated a buy signal on August 17 and is invested in Gold.
Silver:The modified Coppock Silver indicator shown in Fig 7. A week after exiting silver, iM-coppock model generated a buy signal begin August 2020 and is again invested in silver.
This indicator is described in Silver – Better Than Gold: A Modified Coppock Indicator for Silver.
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